Full Text of SB2245 97th General Assembly
SB2245sam001 97TH GENERAL ASSEMBLY | Sen. Chris Lauzen Filed: 3/11/2011
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| 1 | | AMENDMENT TO SENATE BILL 2245
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2245 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Income Tax Act is amended by | 5 | | adding Section 221 as follows: | 6 | | (35 ILCS 5/221 new) | 7 | | Sec. 221. Educational Improvement Tax Credit. | 8 | | (a) The General Assembly finds and declares that the | 9 | | Constitution of the State of Illinois provides that a | 10 | | "fundamental goal of the People of the State is the educational | 11 | | development of all persons to the limits of their capacities", | 12 | | and that the educational development of every school student | 13 | | serves the public purposes of the State. In order to enable | 14 | | Illinois students to develop "to the limits of their | 15 | | capacities", all students must have access to expanded | 16 | | educational opportunities. This Section is in the public |
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| 1 | | interest, for the public benefit, and serves a secular purpose. | 2 | | (b) An educational improvement tax credit program is hereby | 3 | | established to enhance the educational opportunities available | 4 | | to all students in this State. | 5 | | For tax years beginning after December 31, 2011, a taxpayer | 6 | | shall be allowed a credit, not in excess of $100,000, against | 7 | | the tax imposed by subsections (a) and (b) of Section 201 of | 8 | | this Act for contributions to a qualified student assistance | 9 | | organization in the taxable year in which the contribution is | 10 | | made. The credit shall not exceed 90% of each dollar | 11 | | contributed during the taxable year by the taxpayer. For | 12 | | partners, shareholders of Subchapter S corporations, and | 13 | | owners of limited liability companies, if the liability company | 14 | | is treated as a partnership for purposes of federal and State | 15 | | income taxation, there shall be allowed a credit under this | 16 | | Section to be determined in accordance with the determination | 17 | | of income and distributive share of income under Section 702 | 18 | | and 704 and Subchapter S of the Internal Revenue Code. | 19 | | In no event may any credit be claimed for amounts deducted | 20 | | pursuant to Section 170 of the Internal Revenue Code in | 21 | | arriving at taxable income. | 22 | | (c) For purposes of this Section: | 23 | | "Contribution" means a donation of cash. | 24 | | "Qualified student assistance organization" means a | 25 | | nonprofit entity that: | 26 | | (1) is exempt from federal taxation under Section |
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| 1 | | 501(c)(3) of the Internal Revenue Code of 1986 and any | 2 | | similar provision of a later compilation; and | 3 | | (2) contributes at least 90% of its annual receipts, as | 4 | | required by the by-laws of the organization and as | 5 | | documented by the nonprofit organizations annual AG990-IL | 6 | | Charitable Organization Annual Report, or, if the | 7 | | organization is exempt from filing such a report, by a | 8 | | report containing identical information to that contained | 9 | | in the AG990-IL and certified by the President and | 10 | | Treasurer of the organization, or alternatively, two | 11 | | trustees of the organization, either to scholarships for | 12 | | qualifying students at a school or to enhance educational | 13 | | options for qualifying students by providing qualifying | 14 | | students access to secular, neutral, non-ideological | 15 | | programs, or activities outside the curriculum or academic | 16 | | program of a school, as long as the program or activities | 17 | | meet the requirements set forth in rules promulgated by the | 18 | | Illinois State Board of Education. An entity that has been | 19 | | in existence less than 2 years prior to the filing of an | 20 | | application under subsection (f) of this Section shall meet | 21 | | the requirements of this subsection if its charter, bylaws | 22 | | or other governing instrument requires that it contribute | 23 | | 90% of its annual receipts for the purposes described in | 24 | | this subsection. | 25 | | "Qualifying student" means an individual who: | 26 | | (1) is a resident of the State of Illinois; |
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| 1 | | (2) is under the age of 21 during the calendar year for | 2 | | which a credit is sought; | 3 | | (3) during the calendar year for which a credit is | 4 | | sought is a full-time pupil enrolled in a kindergarten | 5 | | through 12th grade education program at any school, as | 6 | | defined in this subsection (c); and | 7 | | (4) is a child of a parent or parents, or is under the | 8 | | legal guardianship of an individual or individuals, with a | 9 | | base income of not more than $50,000 and resides in the | 10 | | household with those parents or guardians, provided that if | 11 | | there is more than one dependent member of the household | 12 | | under the age of 21, counting the qualifying student, then | 13 | | this annual income requirement shall be increased by | 14 | | $10,000 for each dependent member of the household under | 15 | | the age of 21 in excess of the one qualifying student. | 16 | | Qualified student assistant organizations shall be | 17 | | responsible for determining whether a student is a | 18 | | qualifying student, pursuant to rules adopted by the | 19 | | Illinois State Board of Education. | 20 | | "School" means any public or State-recognized non-public | 21 | | elementary or secondary school in Illinois that is in | 22 | | compliance with Title VI of the Civil Rights Act of 1964 and | 23 | | attendance at which satisfies the requirements of Section 26-1 | 24 | | of the School Code. | 25 | | (d) No tax credit established by this Section is allowed if | 26 | | the taxpayer designates a contribution to a student assistance |
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| 1 | | organization for the direct benefit of any particular | 2 | | qualifying student. | 3 | | (e) Qualified student assistance organizations shall | 4 | | provide scholarships or funding for enhanced educational | 5 | | options without limiting availability to only students of one | 6 | | school. | 7 | | (f) A tax credit granted under this Section that is not | 8 | | used in the taxable year in which the contribution was made | 9 | | shall not be carried forward or carried back and is not | 10 | | refundable or transferable. | 11 | | (g) A taxpayer must apply annually to the Department and | 12 | | receive approval for a tax credit under this Section prior to | 13 | | making a contribution to a student assistance organization. | 14 | | Applicants must be submitted to the Department no later than | 15 | | March 31 each year for contributions to be made for tax years | 16 | | ending on or after July 1 of that same year. On May 1 of each | 17 | | year, the Department shall, on a random basis, select | 18 | | applications until the total aggregate amount of all requested | 19 | | tax credits equals the maximum provided for in subsection (h). | 20 | | The Department shall adopt rules pursuant to the requirements | 21 | | of the Illinois Administrative Procedure Act that set forth the | 22 | | information the Department can require on the tax credit | 23 | | application and the manner in which the tax credit lottery is | 24 | | to be conducted. | 25 | | (h) The total aggregate amount of all approved tax credits | 26 | | shall not exceed $30,000,000 in any State fiscal year. |
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| 1 | | (i) The Department shall adopt rules consistent with this | 2 | | Section for the administration of the educational improvement | 3 | | tax credit program. | 4 | | (j) A scholarship received by a qualifying student shall | 5 | | not be considered to be taxable income. | 6 | | (k) This Section is exempt from the provisions of Section | 7 | | 250.
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.".
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